Quote from: o_e_l_e_o on July 24, 2019, 08:20:10 PM

Quote from: Upgrade00 on July 24, 2019, 07:28:57 PM

In this case could the central banks print more money to cover the rush and prevent a collapse?

Sure, a bank could borrow from the central bank, such as the Federal Reserve, which in this case is known as a "lender of last resort". This is more-or-less what happened during the 2008 financial crash when the banks were "bailed out". It introduces a number of problems, not least the fact that the tax payer ultimately has to bear the burden of the bail out.

Quote from: deisik on July 24, 2019, 07:35:23 PM

In the modern day money is created via credit (it is called credit money for a reason).

Correct. It is fully known as the "credit theory of money". To follow on from my example of fractional reserve above, in credit theory the bank doesn't even need a deposit to start lending out. They simply create a $100 credit of new money in your account, whilst at the same time debiting you $100 in a new payment request. From the bank's point of view there has been no net change; their reserves haven't changed and their balance book still has the same bottom line. However, $100 of new money has just been created.

Oh, I get it now, We just create a supply of money out of thin air and expect everyone else to work for it? ahh sounds like $lavery, oh not to mention now you have to pay interest on that $100 that does not even exist compound or not.

What a fucking great system my doods.

LOOK AT THIS ONE HE IS GOING HEAD OVER HEELS FOR IT